A Tale of Two Buses, cont.

So I worked on my story-telling skills, and it was good for a start. It was a story that was trying to prove a point. A point that has long term financial implications when taken to heart the lessons learned.

If you were brought here by accident, and you have no idea what you are about to read here, it is highly recommended to read the first part of this 2-part blog series here.

If you have read the story I just made a few days ago, then you are prepared to understand the lessons and the interpretations of the characters, situations and places presented. In personal finance, especially for protection and investments, a great way to make people understand it is through a simple story. And those involved in the story.

So let's dissect them one by one:

A Tale of Two Buses

Ahhh summer.

That time of the year again when you're out in the beach or in some favorite vacation spot chilling with your family and friends.

That time of the year when you have nothing to worry about school if you are a student.

That time of the year when you can just bask in the glory under the sun and make things happen.

So there's this wonderful place in the Philippines called Baguio City. Known to be the country's summer capital, my intrigue over why it is called such will eventually be answered once I touch down there next month (I've been there, though, like a few years ago on a very cold November, but that obviously wasn't summer).

Here's a quick background about the city: Baguio city is an elevated metropolis in the center of Luzon, the largest island in the Philippines. The climate in the city is as cold, or maybe colder, than the usual places that you would often visit around the country. 

To get to Baguio, there are apparently a lot of ways. And they all differ in number of hours of travel, plus the fare and the availability of schedules.

One way to get there is the simplest mode of transportation, cavemen are definitely good at this - walking. By foot you might get there from the capital city of Manila in about a week, depending on weather conditions, physical capability and stopovers as needed. If you want to lose weight effectively, going uphill from the capital city to Baguio is once strong recommendation.

Another way is through a bicycle. With the force of gravity strongly against you, and the strength to make every pedal towards the entrance of the city, I'd give you about 4 days from Manila. Make sure to have your  wheels checked once in a while because it's gonna be a long ride.

The bus is one of the most popular options for tourists in getting to Baguio city. From Manila it is like an eight hour ride. Commercial buses are good; private vehicles and tour buses are fun and convenient.

Clearly the fastest way to get to Baguio city is by a plane. In less than 30 minutes from Manila you arrive. So quick it's just like going to work on a regular day.

So what am I trying to say here? This is the situation. I hope you enjoy the ride.

Some [Financial] Safety & Security, Please (5)

Basically, the main uses of life insurance are for protection of yourself, your family and your assets, and investment to provide you with long term savings and a comfortable retirement with the cash values and dividends that have accumulated over the years.

Now people have come to ask this one question: When is the right time to get life insurance?

To answer that, we always start with WHY.

WHY should I get life insurance? WHY is it really important to get one? WHY, do you think it would really benefit me?

I believe my previous posts on financial safety and security through this instrument has been well-explained. If not yet, feel free to contact me.

So back to WHEN.

When exactly do you need to have one?

Some [Financial] Safety & Security, Please (4)

The thing about life insurance is that its common objective is that while you are still working to make a living for you and you family, you can already safeguard the financial storm that can bring about in an individual in case of death and disability, accident or critical illness. While making sure the surviving family members live on and sustain the standard of living after the loss. At the same time, it can provide you with the funds necessary during your later years when your children are all grown up and you start to lean towards retirement

Eventually, as you grow older, the need for life insurance may lessen as your responsibilities have declined once your children are all grown up, having families of their own and planning for their respective families. Unless you are really financially free by the time you hit your desired retirement age, then you are left with no choice but to strive hard and continue to work.


Regardless of sex, race, socio-economic status and occupation, another purpose why life insurance can be of great benefit to people is...

2. Investment

Some [Financial] Safety & Security, Please (3)

One day someone came up to me and asked, "What is the right insurance plan for me?"

My answer to that would be "What is your plan?"


Life insurance serves different purposes, for different plans, for different hopes in the future.


In the end, it's all about "why you need it", and "how soon you should get one".


Remember the last time you saw something which looks valuable to your eyes? And after careful evaluation, whether you really need to buy it, its benefits to you, the affordability and warranty, you decided to purchase it?


Life insurance is indeed a need, just like that valuable item you saw in the supermarket. Some people just don't realize its value until their time is done here on earth, or when they really need it the most. Like I said on the previous post, the building blocks of wealth cannot stand without its foundation, which is insurance. And without it, you can see your wealth diminish and leave your family in financial rubble, which would end up in a scrambling of money and other financial instruments to keep up with the family's standard of living once you are gone.


So what are the different purposes / uses of life insurance? Let me count to you the ways.

Some [Financial] Safety & Security, Please (2)

A house can never be built without putting up a foundation to which it can stand on, or else a storm can just wash it away without warning. A business can never be set up without laying out the fundamental principles guiding the endeavor and every other factor that needs to be ruled in order to build it. A student may never be able to pass the exam without executing the most basic guideline in answering it - follow instructions.


In personal finance, a person may never be truly considered financially free if he does not arm himself with a foundation that helps build his wealth and protects him and his family from any financial disasters.


Friends, the road to wealth takes a long time to reach the destination (goal). Building your structure of financial freedom may take years, or even decades, to see it rise to the top and ready for use in achieving your needs and dreams in life. But without the proper support, base and foundation to keep it standing while you are building the structure, your financial value would collapse and put yourself, and probably your family, into rubble and financial depression that it may take a long period to recover, or maybe never.


This financial instrument that has the ability to protect you and your investments is insurance.